Federal fumbles and casting doubt

Governments… we count on them to provide leadership and do what is right for the masses. In the context of housing, this means, among other things, devising policy that makes sense.

Take, for example, the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act that came into effect Jan. 1, for a period of two years. The purpose was to restrict foreigners from buying homes in Canada, to make more of the existing housing supply available to Canadians.

Perfectly valid action, right?

Access to foreign investment

However, as Building Industry and Land Development Association (BILD) CEO Dave Wilkes explains, the Act actually risks making Canada’s housing supply crisis worse, not better. As written, the Act prohibits Canadian companies with more than three per cent foreign ownership from buying vacant land or farmland for residential development, or from purchasing properties with less than four units on them, thereby inhibiting assembling parcels of land for multi-unit construction.

Importantly, this legislation effectively cuts off access to foreign investment for new home construction (a routine occurrence, as in other industries), putting future housing projects at risk.

Builder associations across the country – BILD in the GTA, to the national Canadian Home Builders’ Association, and the Residential Construction Council of Ontario at the provincial level – are lobbying for amendments.

Turning to local housing policy issues, the City of Toronto recently tabled its Housing Action Plan 2022-26, which identifies a strong “made-in-Toronto, multi-pronged and transparent approach to increasing housing supply, choice and affordability for current and future residents.”

Casting doubt

Again, this is a sensible, worthwhile and necessary initiative by government.

Trouble is, Toronto is currently without a mayor, given John Tory’s recent resignation, and residents will vote for a new city leader on June 26. In the coming weeks, as potential candidates throw their hat into the ring and map out their platforms, it will be interesting to learn where each of them stands on housing. Some are already saying they don’t necessarily agree with some of the changes proposed in the housing plan – casting doubt on whether they have progressive views on such matters.

You know, the types of positions that will prevent a repeat of the recent federal overreach, and that actually help resolve, not complicate, the issues.